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The paper considers a marketing decision problem in a periodic review model. The demand distribution is assumed to be exponential, with the mean demand being a concave increasing function of the level of marketing effort. The optimum ordering policy and the optimum level of marketing are determined so as to minimize the total expected cost over a re-order interval. Optimum decision rules are given for some particular functional forms of the mean demand.

A Marketing Decision Problem in a Periodic Review Model with Exponential Demand and Shortages